IMF projects India's growth rate at 7.3 percent in 2018, at 7.4 percent next year

New York, Oct 9 (IBNS): The International Monetary Fund (IMF) on Tuesday predicted that India might be witnessing a 7.4 percent growth rate in 2019.

The IMF predicted that the Asian nation is likely to have a 7.3 growth rate in the current year.

"India’s growth is expected to increase to 7.3 percent in 2018 and 7.4 percent in 2019 (slightly lower than in the April 2018 World Economic Outlook [WEO] for 2019, given the recent increase in oil prices and the tightening of global financial conditions), up from 6.7 percent in 2017," the IMF said in the World Economic Outlook report.

"This acceleration reflects a rebound from transitory shocks (the currency exchange initiative and implementation of the national Goods and Services Tax), with strengthening investment and robust private consumption. India’s medium-term growth prospects remain strong at 7¾ percent, benefiting from ongoing structural reform, but have been marked down by just under ½ percentage point relative to the April 2018 WEO," it said.

Speaking on China, the IMF report said: " In China, growth is projected to moderate from 6.9 percent in 2017 to 6.6 percent in 2018 and 6.2 percent in 2019, reflecting slowing external demand growth and necessary financial regulatory tightening. The 0.2 percentage point downgrade to the 2019 growth forecast is attributable to the negative effect of recent tariff actions, assumed to be partially offset by policy stimulus."

Meanwhile, in its report, the IMF's global growth is projected at 3.7 percent for 2018–19—0.2 percentage point lower for both years than forecast in April.

IMF projects India's growth rate at 7.3 percent in 2018, at 7.4 percent next year